Business Valuation Modeling Part I

Recommended Prep Courses

These preparatory courses are optional, but we recommend you to complete the stated prep course(s) or possess the equivalent knowledge prior to enrolling in this course:

1. Accounting Fundamentals
2. Reading Financial Statements
3. Excel Crash Course
4. Building a 3 Statement Financial Model

Business Valuation Modeling Course Overview

This business valuation course provides students with the skills they need to perform detailed business valuation modeling using three main methods: Comps, Precedents, and DCF Analysis.

The valuation training in this course will be valuable to those looking for a detailed and step-by-step explanation of how to value a company based on comparable companies, past M&A transactions, and Discounted Cash Flow (DCF) models.

Business Valuation Methods

Business Valuation Course Learning Objectives

Upon completing this course, you’ll be able to:

• Understand the difference between equity value and enterprise value
• Learn how to calculate various equity and enterprise value multiples
• Understand the drivers of equity multiples and value a business using equity multiples
• Calculate and analyze valuation multiples
• Learn the most common multiples: EV/Revenue, EV/EBITDA, EV/EBIT, P/E
• Learn when it is most appropriate to use each type of multiple
• Value a company using comparable company analysis
• Value a company using precedent M&A transactions
• Value a company using discounted cash flow techniques
• Complete Excel-based case studies and solutions
• Utilize a PDF valuation reference guide that can be downloaded to your computer and used during the course for future reference.
• Calculate free cash flows to the firm and free cash flows to equity
• Outline the main drivers of free cash flows
• Value a business using a two-stage DCF valuation model
• Learn how to calculate the cost of equity, cost of debt and the weighted average cost of capital
• Calculate beta in an Excel spreadsheet
• Calculate an organization’s weighted average cost of capital (WACC)
• Create a football field chart to summarize the various valuation methods used in the analysis: Comps, Precedents, DCF

Allocating Cash Flow by Investor Type

Comparable Company Analysis

Learn how to build a Comps table and calculate all the equity value and enterprise value ratios required to value a business.

Drivers of Business Valuation

Learn about the main drivers of free cash flow to the firm and business valuation in this course.

Discounted Cash Flow (DCF) Modeling

In this corporate valuation course, you will learn to build a DCF model from scratch, building on the skills you developed from CFI’s prior courses on building a 3 statement model.

Weighted Average Cost of Capital (WACC) – Corporate Valuation

Learn how to perform a weighted average cost of capital (WACC) analysis in Excel and use the slope function to calculate a company’s beta.

Corporate Valuation Football Field Chart

Create a football field chart in Excel at the end of the course to combine the analyses of all methods used in the corporate valuation model built earlier in the course.

Who should take this corporate business valuation course?

This online class is designed for professionals working in private equity, investment banking, corporate development, and other areas of finance and accounting.  The course provides both foundational building blocks for beginners and covers more advanced valuation aspects for experienced practitioners.

Financial Modeling and Analyst Training

For beginners to advanced users, this corporate valuation modeling course teaches you how to be a complete financial analyst.

This class is one of the ten required “Core” courses for CFI’s financial analyst training program, which grants the Financial Modeling & Valuation Analyst (FMVA) certification.